1. ABC companys cost function for the next four months is C= 500,000 + 5q.
Required:
The break-even dollar volume of sales if the selling price is Birr 6 per unit.
What would be the companys cost if it decided to shut down operations for the next four months?
If, b/s of a strike, the most the company can produce is 100,000 units, should it shut down? Why or why not?
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